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Idaho: New Law Includes Single Sales Factor Apportionment and Market-Based Sourcing of Intangibles
H.B. 563, signed by gov. 3/16/22. Applicable retroactively to tax years beginning on or after January 1, 2022, new law incorporates a single sales factor apportionment formula (previously, a three-factor apportionment formula with double-weighted sales) that includes a “throwback” rule on sales of tangible personal property where the Idaho corporate income taxpayer is not taxable in the state of the purchaser. The bill also adopts market-based sourcing for sales other than sales of tangible personal property for state corporate income tax purposes. Additionally, the legislation makes various other changes to Idaho Code § 63-3027, which provides rules for calculating the taxable income of multistate or unitary corporations, and revises some provisions pertaining to alternative apportionment.
See recently issued Multistate Tax Alert for more details on the tax law changes included in this bill and please contact us with any questions.
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